HomeMy WebLinkAboutResolution 03-167-CCBOARD OF COUNTY COMMISSIONERS
Grant County, Washington n
RESOLUTION ADOPTING AMENDMENT RESOLUTION No. 03- I -CC
TO DEFERRED COMPENSATION PLAN
WHEREAS, the Board of County Commissioners, Grant County, Washington,
(hereinafter "Employer") heretofore established the Deferred Compensation Plan (hereinafter
"Plan'); and
WHEREAS, the Employer desires to amend the Plan to conform with the final 457
Treasury regulations ("regulations") issued in July 2003; and
WHEREAS, this amendment is intended as good faith compliance with the requirements
of the regulations, and
NOW THEREFORE BE IT RESOLVED THAT, effective January 1, 2004 the
Employer hereby amends the Plan by:
A. replacing section 2.3 with the following
112.3 Agreement Effective Date
In general, an Employee must complete and file with the Employer a Participation
Agreement prior to the month deferrals begin. Notwithstanding this requirement,
the Employer may establish a cutoff date for receiving Participation Agreements
as long as the cutoff is no later than the deadline provided in section 1.457-4(b) of
the final 457 regulations and the cutoff date is applied in a nondiscriminatory
manner. Thereafter, during each month in which the Employee is a Participant in
the Plan, that portion of his said Compensation which is specified by the
Employee in the Participation Agreement, shall be deferred and paid in
accordance with the provisions of this Plan."
B. deleting the following portion of section 2.6 and renumbering section 2.6(d) and 2.6(e) as
2.6(c) and 2.6(d) respectively:
"(c) The pre -retirement catch-up provision may not be used during the calendar year that
the Participant ceases to be an Employee."
C. replacing section 4.2, 7.1 and 7.2 with the following:
"4.2 Unforeseeable Emergency Distribution
A Participant may apply for a lump sum withdrawal of funds from the Plan in the
event of an unforeseeable emergency. The Employer will evaluate the request for
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conformity with its interpretation of the applicable regulations. The decision of
the Employer concerning whether an unforeseen emergency exists shall be final.
An unforeseeable emergency is a severe financial hardship of the Participant or
Beneficiary resulting from an illness or accident of the Participant or Beneficiary,
the Participant's or Beneficiary's spouse, or the Participant's or Beneficiary's
dependent (as defined in Code section 152(a)); loss of the Participant's or
Beneficiary's property due to casualty (including the need to rebuild a home
following damage to a home not otherwise covered by homeowners insurance,
e.g., as a result of a natural disaster); or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of the
participant or the beneficiary.
Examples of unforeseeable emergencies include (1) imminent foreclosure of or
eviction from the Participant's or Beneficiary's primary residence, (2) the need to
pay for medical expenses (including non- refundable deductibles), as well as for
the cost of prescription drug medication and (3) the need to pay for the funeral
expenses of a spouse or a dependent (as defined in Code section 152(a)). Note
that the purchase of a home and the payment of college tuition are typically not
unforeseeable emergencies.
The Participant must satisfy the Employer that the facts and circumstances of his
or her situation fall within the definition of unforeseeable emergency. A
distribution on account of an unforeseeable emergency may not be made to the
extent the emergency is or may be relieved through reimbursement or
compensation from insurance or otherwise by liquidation of the Participant's
assets (to the extent liquidation would not itself cause severe financial hardship)
or by cessation of deferrals under the Plan."
"7.1 Transfers In
All or a portion of an Employee's benefit may be transferred from an Eligible
Deferred Compensation Plan maintained by another eligible tax-exempt employer
and credited to the Participant's Account under this Plan as long as the transferor
plan provides that such transfer can be made and the Employee has severed
employment with such other employer.
As it deems necessary, the Employer may require such documentation from the
transferor plan to effect the transfer, to confirm that such plan is an Eligible
Deferred Compensation Plan within the meaning of Code Section 457(b) and to
ensure that transfers are provided for under such plan.
The Employer may refuse to accept a transfer in the form of assets other than
cash, unless the Employer agrees to hold such other assets in trust under the Plan.
Any amounts transferred that have been deferred during the current calendar year
will be considered deferrals subject to current calendar year deferral limitation."
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117.2 Transfers Out
All or a portion of a Participant Account may be transferred to an Eligible
Deferred Compensation Plan maintained by another eligible tax-exempt employer
as long as the transferee plan provides that such transfer can be made and the
Employee has severed employment.
Upon the completion of such transfer, the Plan and Employer are discharged of
any liability to the Participant to pay amounts so transferred."
As it deems necessary, the Employer may require such documentation from the other plan to
effect the transfer, to confirm that such plan is an Eligible Deferred Compensation Plan within
the meaning of Code Section 457(b) and to assure that transfers are provided for under such plan.
Such transfers shall be made only under such circumstances as are permitted under Code Section
457 and the applicable regulations."
IN WITNESS WHEREOF, the Employer has executed this Plan Amendment this
p M day of December, 2003.
BOARD OF COUNTY COMMISSIONERS
Yea Nay Abstain GRANT COUNTY, WASHINGTON
Deborah Kay Mor Chair
ATTEST: 0/ ❑11 '.
Le oy C. Allison, ember
Clerk of the Board
Tim Snea , e ber
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